Question

Hi everyone, I have a little bit of a dilemma and I wanted someone else’s thoughts on the issue of getting a new car. So I’ve had a “new” car for about a year. It’s 2015 fiat and it’s trash on gas. I’m a 23 year old college student and it takes me 30 min to get to my job and work from my house. I fill it up at least once a week if I don’t have to drive anywhere else. I’ve been paying everything on time and have a 311$ monthly payment (which I pay for all on my own) with the original plan of waiting one year before going in to the dealer to see if I can get a better rate or trade it. I hate it and I want to trade it in for something more gas friendly from Toyota but with how everything is being impacted from the virus I don’t know if it will be a good time to do so. Plus I don’t know anything about the process of getting a different car and I had to have my mom as the primary signer because I don’t have much credit history. (But it’s way better now than it was a year ago since I’ve been following this page and Miko. ) Any advise anyone?  

Answer 1

I work at a dealership . I can tell you that a lot of the incentives are great right now as far as 0 percent and no payments for 90 days . But the used car market isn’t really good right now so your vehicle probably will not valued as much . I would suggest looking at a local credit union to tray and refinance for a better rate. I believe if you trade out now you would be upside down and end up paying more then what you are now .  

Answer 2

Don't do it! Once a week isn't bad for gas. You owe way too much on the loan and will end up in a massive hole you won't find your way out of.  

Answer 3

Not sure what fiat you have, but mine’s trade in value is garbage! We bought a 2016 fiat 500x before we PCS’d to Germany almost 4 years ago. We feared my Explorer would be too big on the small roads here, gas, etc. We’re fixing to move back to the states soon & looked to trade it in for something bigger/better. We owe $16, 000 on it & when we had it appraised for trade in value last week, they offered us $8000. There’s no way we’re going to roll $8000 onto another car loan or take the loss, so we’ll keep it & give it to our daughter in a few years when she starts driving. But I feel you on wanting to get away from your fiat, for as small as they are, they suck gasoline like tanker trucks!  

Answer 4

I’d calculate how much you would actually save by getting a more fuel efficient vehicle. Overall, the savings may not be worth it compared to all the depreciation you would take on trading it in/selling it.  

Comments

@hippy997 how would I calculate the difference. Because honestly this car is going to be the death of me. I’m honestly scared to keep it. I know it will be years for me to save up to buy a “new”car cash. By then my car will be valued close to nothing.  

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@hephaestus1 This is how I would do it but there are probably more factors to consider: 1. Figure out what your miles per gallon (mpg) in the Fiat is and what it is on the vehicle you are thinking about getting (you can look up fuel economy ratings). Will the increased fuel economy save you a ton in gas costs? 2. For the fuel cost savings, let’s say it is $50 a month, how does that compare to what you will pay for the new vehicle? If it is more than $50, then it will cost you more for the new car and any savings on fuel is lost. 3. Other things to consider, what would insurance cost on the vehicle? More/less? Hard to know without calling the insurance company and getting an estimate. 4. Try selling the car on your own- you generally should be able to sell it for more than what you could trade it in for. It is a tough decision and so many variables to figure out what the best thing is for you specifically. Just try not to roll over any negative equity into a new vehicle, if you decide to trade it in. That for sure will be a bad move. Good luck Sarah!  

Answer 5

Start with comparing what you owe vs. what the Kelly Blue book value is. If you’re upside down (you owe more than you can sell for), keep it. If that’s not the case, consider a private sale (to a person not a dealership). Lots of tips on how to safely sell to a person are available online. Then look to buy a used Toyota or Honda from a personal seller too. You can still get a loan (if you need one; not recommended by me, keep saving and pay cash! ) for a private party vehicle purchase too. Good rates are offered through credit unions.  

Comments

@andrus69 how would that work tho? If I still owe money on the car I wouldn’t be able to sell it too someone else. right.? It’s just stressful to think about because I graduate this fall from college and my student debt is going to start rolling in and idk how I’m going to mange paying that debit off while saving for a car purchase of equal amount as my loan is  

Answer 6

I agree with others. If you are upside down, I would just suck it up and keep it. Otherwise, you will have to sell it and keep paying the loan for the upside down part.